Orecap Receives $1.5M in American Eagle Gold Shares
- Orecap made a 50% return on its $1 million investment
- American Eagle announced the discovery hole at NAK and hit copper-gold mineralization on 12 of 12 drill holes assayed to date
- Orecap now owns approximately 10.7% of American Eagle's outstanding shares
- None.
Toronto, Ontario--(Newsfile Corp. - November 9, 2023) - Orecap Invest Corp. (TSXV: OCI) (OTCQB: ORFDF) ("Orecap" or the "Company") is pleased to announce that American Eagle Gold Corp. ("American Eagle") (TSXV: AE) (OTCQB: AMEGF) exercised its option to re-acquire a
"This creative transaction was a win for all parties. First, Orecap made a
Highlights of this transaction include:
Orecap now owns approximately
10.7% of American Eagle's outstanding sharesAmerican Eagle issued 6,976,744 shares to OreCap for a total value of
$1.5 million Number of shares is based on a 15 day VWAP of 0.215, set three days prior to close
The deal closed on Thursday, November 9th
The option to repurchase the
20% of NAK at$1.5 million was predetermined in October 2022, a month before the announcement of NAK's discovery hole, NAK22-01
Details of the Option
The initial financing arrangement between Orecap and American Eagle allowed the latter to fund its
On October 11, 2022, American Eagle and Orecap entered into an option agreement (the "Option Agreement") and a call option agreement (the "Call Option Agreement"). The Option Agreement granted Orecap the option to earn a
In December 2022, in accordance with the Option Agreement and following the completion of the 2022 drill program, Orecap acquired the Interest in the Project from the
The Call Option Agreement allowed American Eagle to repurchase the Interest from Orecap at a price of
On October 19, 2023, American Eagle obtained shareholder approval from disinterested shareholders, which excluded approximately
Orecap acquiring and maintaining ownership of American Eagle's Common Shares is made for investment purposes. In accordance with applicable securities laws and subject to applicable stock exchange requirements, Orecap may, from time to time, increase or decrease its ownership, control or direction of the common shares of American Eagle in the open market, by privately negotiated agreement, or otherwise depending on market conditions and any other relevant factors. This release must be issued under the early warning requirements of applicable securities laws. Orecap's head office is located at Suite 1805 - 55 University Ave, Toronto, ON, M5J 2H7. A copy of Orecap's early warning report may be obtained from Alex Stewart at (416) 644-1567 or at the Company's profile on www.sedarplus.ca.
About American Eagle's NAK Project
The NAK Project is in the Babine copper-gold porphyry district of British Columbia, near past-producing mines and with excellent infrastructure. Previous drilling at NAK revealed a large near-surface copper-gold system measuring over 1.5 km x 1.5 km. Historical exploration was limited to shallow depths, averaging 170 m. In 2022, American Eagle's 2022 drilling program explored deeper and discovered significant copper-gold mineralization along a northerly trend. The objective for 2023 is to expand the known mineralized footprint at NAK and to identify higher-grade zones of copper and gold. The property is accessible by road and can be drilled year-round. The promising initial results make NAK an ideal candidate for further exploration. Outstanding payments to own
QP Statement
The technical information in this news release has been reviewed and approved by Antoine Schwartzmann, P.Geo, Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."
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For further information, please contact us:
Orecap Invest Corp.
Stephen Stewart, Chief Executive Officer
416.644.1567
sstewart@oregroup.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements)", including details about the business of the Company. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements, including, but not limited to, the statements regarding future results on the Project and the Company's continued investment in American Eagle. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in the Company's public disclosure documents available at www.sedarplus.ca. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/186717
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